Wednesday, 5 October, 2022
TopicCredit

Topic: Credit

Bank credit has bounced back, but rising interest rates & inflation can be new hurdles

Despite rising interest rates, bank credit growth rose to a nine-year-high last month. While credit to MSMEs has shown consistent double-digit growth, it’s large industries that have really helped.  

Why ‘buy now, pay later’ fad doesn’t sit well with RBI

The RBI wants every small-ticket loan to be a marriage officially solemnised in the church of banking. Its new guidelines stop nonbanks from loading digital wallets using credit lines.

‘Buy now, pay later’ can sustain more than just rich lifestyles in India

The BNPL credit innovation can help kirana stores access interest-free liquidity via a formal channel that isn’t circumscribed by personal trust.

Indians took loans for houses & cars through pandemic, but not for education, RBI data shows

Bank credit data between March 2020 and May 2021 shows overall loans given by banks decelerated in the second wave. But personal loans grew in double digits.

What are credit default swaps, the 2008 ‘taboo’ financial product that RBI wants to revive

RBI released new draft guidelines for credit default swaps, calling them an essential instrument for developing corporate bond markets. Here's all you need to know about it.

‘Data rich’ and looking for loan? Niti Aayog’s new data-sharing framework could help

Under the proposed DEPA, Indians who have no access to formal credit due to lack of collateral will be able to apply for loans using several types of digital documents.

Why lower borrowing costs can’t save India’s crisis-hit NBFCs

Worries are mounting that bad debt at NBFCs may rise as the world’s strictest lockdown hammered India’s business and left millions jobless.

You don’t have to pay any loan EMI for next 3 months, and it won’t hurt your credit history

RBI defers all loan repayments taken from any financial institution until 30 June, says non-payment will not be classified as default.

India’s broken engine of finance needs to be fixed, quickly

Since IL&FS crisis, borrower has been hit by triple whammy of higher interest rates, fewer refinancing options & souring of sentiment among lenders.

MUDRA scheme: What the Modi government failed to do for small businesses

The slowdown in credit to small businesses is yet another example of central planning gone wrong.

On Camera

YourTurn

File photo of Pakistan's Finance Minister Ishaq Dar | Reuters

Ishaq Dar, new Pakistan finance minister—a Nawaz Sharif’s mole in Shehbaz Sharif’s cabinet

Insanity is doing the same thing and expecting different results, Albert Einstein said. But Paksitanis don't get it--Dar's been appointed FM for the fifth time.
Beneficiaries of the PM-GKAY PDS centre in Odisha | Representational image | ANI

Free grains, fuel tax deferred – Gujarat, HP on its mind, Modi govt puts politics over economy

RBI's rate hike also among decisions announced last week that might pay political dividends in state polls, but could come with commensurate economic costs, say economists.

Defence

IAF chief Air Chief Marshal V. R. Chaudhari with Defence Minister Rajnath Singh | Twitter/ @IAF_MCC

Need organisation structure best suited to Indian conditions, IAF on theatre commands

The IAF chief said the model of integration that India adopts must be future-ready, must reduce levels of decision-making, and capitalise on the strength of all three services.

India’s hijab supporters will lose even if they win SC battle. Because the real war is political

In a highly polarised time, cornered minorities tend to lean back and protect the roots and fundamentals of what is so dear to them. Politically, it can often be a bad trap.
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